Russian crypto mining operator Bitriver will use electricity generated from associated gas provided by Gazprom Neft to mint digital coins. As part of the new deal, the mining company will in turn develop the digital infrastructure for the Russian oil producer’s wells.
Crypto mining operator Bitriver partners with Russian oil giant Gazprom Neft
Russia’s third-largest oil producer, Gazprom Neft, will power a data center operated by the country’s leading crypto mining company, Bitriver. The electricity needed to produce the digital currency will be generated using the associated LPG, a type of natural gas found in oil deposits.
RBC Crypto quoted a Bitriver representative as saying that the arrangement is part of a memorandum of cooperation signed by the two companies during the St. Petersburg International Economic Forum. The announcement comes after the Russian mining operator was recently sanctioned by the United States.
Under the agreement, the mining company will develop digital infrastructure at Gazprom Neft’s fields and provide services that rely on computing hardware, the report detailed.
Gazprom Neft’s business model does not include digital currencies, but the oil giant is seeking solutions that allow for the “beneficial use” of associated gas obtained during oil extraction.
Gazprom Neft enterprises in three regions of Russia have built the infrastructure needed for energy-intensive crypto-asset mining using associated gas.
Gazprom Neft is the oil subsidiary of Russian state-owned gas giant Gazprom. The company was offering bitcoin miners the opportunity to use excess gas from oil drilling, according to initial reports, published in January last year. U.S. companies have also been using stranded gas to mint cryptocurrencies.
Oil-rich Oman has announced a plan to mine bitcoin using associated gas, with the goal of reducing harmful emissions from venting or burning the gas into the atmosphere. The country has acquired a stake in Crusoe Energy Systems Inc., a U.S. company that specializes in crypto mining using excess fuel energy, for $350 million.
Do you expect other oil companies to start working with cryptocurrency miners to take advantage of the associated LPG? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.